Apperson & Co. v. Ford

23 Ark. 746
CourtSupreme Court of Arkansas
DecidedDecember 15, 1861
StatusPublished
Cited by14 cases

This text of 23 Ark. 746 (Apperson & Co. v. Ford) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Apperson & Co. v. Ford, 23 Ark. 746 (Ark. 1861).

Opinion

Mr. Justice Fairchild

delivered the opinion of the court.

Previous to the 16th of December, 1853, Smith, and Ford & Brother, a commercial firm of Louisville, Ely., were joint owners of the lands that are the subject of controversy. William Gr. Ford, not one of the firm of Ford & Brother, on that day, made an agreement with the owners of the lands to purchase them for Keid, under which James W. Smith, and James Ford and Charles F. Ford, on the 1th of January, 1851, executed a deed for the lands to John Beid, for the expressed consideration of eleven thousand, four hundred arid eighty dollars, one-fourth to be paid down, and the other fourths, in one, two and three years from the first of January, 1851. Beid declined to ratify the purchase, and on the 27th of January, 1851, he conveyed the lands to William Gr. Ford for the consideration of one dollar, the deed also containing this provision: “ the lands above “ described were, by deed, on the 1th January, 1851, conveyed “ to the party of the first part by James W. Smith and James “ Ford and Charles F. Ford, the consideration of said convey- “ anee purporting to be for the sum of eleven thousand four “ hundred and eighty-two 32-100 dollars, one-fourth of which “ was in hand paid, and the balance to be paid in equal pay- “ ments of two thousand eight hundred and seventy 58-100 “ dollars; for which, it appears to be recited in the deed that “ notes were executed payable in eighteen fifty-five, 1856 “ and 1857: it is agreed between the parties to this indenture, “ that the lands herein conveyed are liable for the payment of “ the three notes above named; and in no event are the parties “ of the first part to be held liable for the. payment. of the “ same.”

Ford & Brother acquired their title to one-half the lands in March, 1853. William Gr. Ford became associated with them as a partner in September, 1853, and so continued till May, 1851, when he withdrew from the business. The other members of the firm resumed their partnership name, and continued their operations till the 15th of January, 1855, when they made an assignment for the benefit of their creditors, their liabilities largely exceeding their assets.

It does not appear from the record that Smith was advised of the refusal of Beid to accept the purchase which William G-. Ford had made for him, till in May, 1854:, when, as usual with Smith, he left his residence in Phillips county for Kentucky; but against this he was fortified, as, at the time of the sale of the lands, he required William G. Ford to stand in Beid’s place, by taking the land should Beid not confirm the trade.

Smith, being indebted to Ford & Brother in a larger sum than his half of the lands would amount to, by arrangement between him, theMrm and William Gr. Ford, on the 24:th of May, 1854:, was paid all that was coming to him on the lands by a credit upon the debt he owed to Ford & Brother: and upon the same day, the whole consideration for the lands was charged upon the books of Ford & Brothers, the style of the firm when the three brothers were in it, to William Gf. Ford, allowance being made to him, as well as to Smith, for the present, payment of the installments that were not due till 1855, 1856 and 1857.

Upon the withdrawal of William Gr. Ford from the firm of Ford & Brothers, Ford & Brother,, consisting as before of James Ford and of Charles F. Ford, upon the 27th of November, 1854:, became indebted to the plaintiffs on a bill of exchange for sixty days, which, maturing after the failure of Ford & Brother, remained unpaid.- To recover the amount due to them, the plaintiffs, on the 8th of March, 1855, commenced their suit of attachment against James Ford and Charles F. Ford in the Circuit Court of Phillips county, which was levied upon the lands in controversy as their property. In due course of law the plaintiffs obtained judgment and execution, bid off the lands at the sheriff’s sale, obtained a deed for them, and filed their bill in this case: that the title for the lands be decreed to have vested in them by the attachment and the proceedings under it, and that the deed to William Gr. Ford be delivered up by him and canceled by the court: to remove the cloud that it created upon the title of the plaintiffs.

To sustain the prayer for relief made against William G. Ford, the plaintiffs maintain that the lands, by the application of the demand of James Ford and Charles F. Ford upon Smith to the payment of his half of the lands, became their entire property : • that the deed of Eeid to William G. Ford was a voluntary conveyance, and that William G. Ford is a voluntary grantee, not only as to Eeid, but also as to. James Ford and Charles F. Ford, the real owners of the lands, inasmuch as the- amount that was charged against William G. Ford for the lands was never paid: or that it was paid with funds that belonged to the creditors of Ford & Brothers, and could not therefore be drawn out of the firm as the individual property of William G. Ford, the withdrawing partner.

•The plaintiffs also insist that the transfer of the lands from Smith and the two Ford’s to Eeid, and from Eeid to William G. Ford, was a contrivance of the three Fords, by which the lands should be vested in William G. Ford as their nominal owner, so as to hold them in secret trust for James Ford and Charles F. Ford, or for himself, without regard to the rights of their creditors ; and that the plaintiffs as creditors of Ford & Brother, having a claim to the lands, by their attachment and purchase thereunder, are entitled to have their sheriff’s deed declared by decree to have invested them with the legal title to the lands, and that the deed of William G. Ford ought not to be permitted to stand to disquiet the plaintiffs, and to throw a cloud upon their title. On the other hand, the three Fords, defendants to the bill, deny all the charges of fraudulent act and intent with which the bill abounds, aver that the deeds to Eeid and to William G. Ford were made in good faith, that William G. Ford, in taking the place of Eeid, only did what he bound himself to Smith to do? if Eeid should not fulfill the terms of the purchase that William G. Ford stipulated with Smith, and that William G. Ford made full payment for the lands. And upon the state of case as presented in the record, William G. Ford denies that the plaintiffs, as subsequent creditors of James Ford and of Charles F. Ford, can make any valid claim upon the lands under their attachment, and also contends that if the plaintiffs have any right of action against him for the lands, it is one that must be prosecuted at law.

The Circuit Court of Phillips county sitting in chancery, dismissed the bill for being without equity, as William G-. Ford was not a party to the bill of exchange upon which the plaintiffs obtained their judgment in the attachment suit, and was not a member of the firm of Ford & Brother, by whom the bill was accepted. The plaintiffs appealed.

Although William G-. Ford was not liable on the bill of exchange, yet if he received a voluntary deed of lands belonging to James and Charles F. Ford, with the fraudulent intent of holding them free from the just demands of their subsequent creditors, the bill of the plaintiffs should not have been dismissed, unless upon the question of jurisdiction.

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Bluebook (online)
23 Ark. 746, Counsel Stack Legal Research, https://law.counselstack.com/opinion/apperson-co-v-ford-ark-1861.